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deflation

   Also found in: Dictionary/thesaurus, Medical, Financial, Wikipedia, Hutchinson 0.05 sec.
deflation: see inflation inflation, in economics, persistent and relatively large increase in the general price level of goods and services. Its opposite is deflation, a process of generally declining prices. The U.S.
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deflation

Contraction in the volume of available money or credit that results in a general decline in prices. A less extreme condition is known as disinflation. Attempts are sometimes made to bring on deflation (through raising interest rates and tightening the money supply) in order to combat inflation and slow the economy. Deflation is characteristic of depressions and recessions.


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This bunker mentality seems to be an abiding concern that years and years of deflation seemed to have planted in the Japanese business psyche.
One argument for such a policy is that deflation provides consumers with an incentive to postpone purchases since the same product will be cheaper in the future.
But the central banking elite has defined deflation as a scourge, and inflation as the remedy.
 
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